Implementing Electronic Sealing for Containers by exporters under self-sealing procedure prescribed by circular 26/2017-Cus dated 1st July 2017, circular 36/2017 dated 28.8.2017 and 37/2017 dated 20.9.2017 - Customs - 16/2017

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE; WILLINGDON ISLAND, COCHIN-682009 F. No. FSP/01/2017. Cus. Date: 01.11.2017 TRADE FACILITY No. 16/2017 Sub: Implementing Electronic Sealing for Containers by exporters under self-sealing procedure prescribed by circular 26/2017-Cus dated 1 st July 2017 , circular 36/2017 dated 28.8.2017 and 37/2017 dated 20.9.2017 -reg 1. Attention of all Exporters/ Importers/ Steamer Agents/ Customs Brokers/ Trade Industry and the Public is invited to the CBEC Circular No. 41/2017-Cus dated 30.10.2017 on the above subject. 2. With the introduction of self-sealing using RFID e-seals, the Board has sought to enhance export facilitation by dispensing the need for exporters seeking the presence of jurisdictional officer for the purpose. of supervising stuffing of the cargo at approved premises. This measure is expected to reduce transaction costs of exporters since they do not have to incur MoT charges in respect of such supervision as well as improve their timeliness of their exports. Such facilitation is proposed to be backed by application of technology in the form of exporters using RFID e-seals since it has the potential to improve visibility and enhance cargo security during transportation to Ports 8s ICDs as well as during holding time 3. Attention is drawn to para 5 of circular 37/2017-Customs dated 20 th September 2017 stating the date for mandatory e-sealing shall be 1 st November 2017. In order to take stock of the preparedness of the trade, field formations, the Board held consultations with the vendors, trade associations and field formations. 4. The following clarifications are prescribed for the sake of uniformity and better understanding of the new procedures to be followed for export of goods under RFID self sealing. Circulars 26/2017 and 36/2017 have obligated following classes of exporters to adopt RFID e-sealing: a) Exporters already enjoying the facility of self-sealing after having been approved by jurisdictional formations under the erstwhile procedures; b) Exporters who have hitherto been availing of supervised sealing and have been automatically entitled to avail of self sealing using RFID e-seals, without having to expressly seek any permission/ approval of the jurisdictional commissioner for this purpose; c) AEOs, regardless of whether they were self-sealing or undertaking supervised sealing, have also been entitled to avail of the new procedure; d) Lastly, all exporters have been extended this facility subject to their filing GST returns but after seeking permission for self-sealing from the jurisdictional Commissioner as per procedure prescribed under para 9(iii) of circular 26/2017-Cus dated 1 st July 2017 . 5. The procedure prescribed under the above circulars applies only to cargo in full container load, sealed at an approved premise, by an entitled exporter. In case of an FCL being received at a Port or ICD under self-sealing using RFID e-seals, prescribed under circular 36/2017-Customs dated 28 th August 2017 , it shall be deemed to be equivalent to a container sealed under the erstwhile system of officer supervised sealing. Unless and until there are good reasons or intelligence to warrant inspection of such containers, there shall be no need for examination of such containers once the RFID e - seal is read as intact or not tampered. 6. In case an RFID seal affixed on a self-sealed container is found tampered, the same shall be subject to examination as already prescribed under para 2(f) of Circular 36/2017-Cus dated 28th August 2017 . However, after examination, the further movement of such a container shall not be under the RFID e-seal procedure. The existing system of using the traditional bottle seals by customs shall continue for such movements. 7. Full containers brought to Ports without RFID e-seals shall be taken to a CFS or allowed direct port entry, as the case may be, and will be subject to usual RMS treatment. Similarly, Full Containers Loads arriving at ICDs, but without RFID e-seals, will be subject to usual risk management parameters. 8. The procedure under the subject circulars does not apply to export of non-containerized cargo or Air cargo or for movement of cargo from CFSs to ICDs/Ports or cargo exported through Land Customs Stations. Extant practices in respect of such cargo shall continue. 9. While the progress made in the coverage of reader network across ports and ICDs is well recognised, but factoring that it may take some time for the field formations to fully set up systems and procedures for handling RFID e-sealed containers as well as receipt of data, the Board has decided that mandatory e-sealing for different classes of exporters shall be brought in a phased manner as indicated below: a) In respect of all exporters who have been permitted self-sealing facilities under erstwhile procedures and exporters who are AEOs, it would be mandatory to seal their export containers with prescribed RFID e-seal w.e.f 8 th Nov. 2017. Any non-compliance will subject the containers to usual RMS parameters. b) In respect of the category of exporters who are availing supervised stuffing at their premises, extant practice of supervised stuffing may continue till 19 th November 2017. With effect from 20 th November 2017, they shall have to switch to RFID e-sealing procedures. c) Regarding the exporters who have newly applied to the jurisdictional customs authority for self-sealing permission under circular 26/2017-Cus dated 1 st July 2017 , they shall commence use of the facility subject to grant of permission and upon adoption of RFID e-sealing. 10. The applicable date for RFID e-sealing implies that exporters are required to use this procedure from the prescribed date. Any container sealed at the exporters premises before the prescribed date, shall not be required to be brought with RFID e-seal. 11. It may be recalled that vide circular 37/2017-Cus , the e-sealing procedure had been made voluntary subject to availability of reader facilities. The procedures in respect of custom stations where readers have not been provided by any vendor so far shall continue till 31 st December 2017 as per existing practices. This office will notify all the stake holders when reader facilities are made available at ICTT vallarpadam. It is also clarified that those exporters who are in possession of RFID e-seals shall be at liberty to commence availing the facilitative procedures after issue of such notification from this office. 12. Difficulties, if any, shall be brought to the notice of the Deputy Commissioner (SSP). (S. Anilkumar) Additional Commissioner of Customs